KONSTANTIN CHERNISHEV:HAVING WON TENDER FOR PURCHASE OF "ARMENTEL," THE RUSSIAN COMPANIES MAY SHARE THE BUSINESS WITH OTHER COMPANIES

Yerevan, June 26. ArmInfo.Notwithstanding small number of mobile
network users, "ArmenTel" company’s obvious merit is the local
telephone network, and that’s why, having won the tender for purchase
of the company, the Russian companies will be able to share their
business with others: particularly, MTS with "Comstar" and "Vimpel"
with "Golden Telecom." Konstantin Chernishev, Co-Director of "Uralsyba"
Analytical Department, said this in the interview to "Vedomosty"
Russian newspaper.

The Russian experts give various evaluations to the deal on purchase
of 90% of "ArmenTel" shares. Thus, Anton Pogrebinsky, ACM-Consulting
expert, stated that the deal may cost $300-350 million, while Yelena
Bazhenova, expert of "Athon," evaluates the share package lower, i.e.
$290-300 million. She doesn’t think purchase of "Armentel" will be
a considerable contribution to the business of the Russian operators.

Nevertheless, Mohammed Amersi, partner of the Swiss Emergent Telecom
Ventures from UAE, stated that the Caucasian and the Middle Asian
markets of telecommunication have great potential, adding that the
situation reminds of Russia ten years ago. He believes "ArmenTel"
cost more than $350 million, but his company isn’t going to pay more.

It’s worth mention that OTE has chosen the main candidates for the
purchase of 90% of "ArmenTel" shares. Reuters informed that the
short list includes the Russian MTS and "Vimpelcom,", as well as two
international consortiums. One of the alliances includes two companies
from UAE, particularly, Emirates Telecommunications Corporation
and Istithmar, as well as the Swiss Emergent Telecom Ventures, that
possesses the package of Synterra’s shares, a Russian operator. The
other consortium includes the Indian VTEL Holding and Knightbridge
Associates company.

According to the newspaper, OTE Greek company became the owner of 90%
of "ArmenTel" shares in 1997, paying $142 million, 10% of the company’s
shares belong to RA Government. As of end March, "ArmenTel" had 328
thousand mobile telephone network users and 600 thousand subscribers
of the local telephone network. The company yielded $145.3 million
of profit in 2005.